it's just hard and it will hurt the economy overall. >> mark: the president said he did something today he didn't want to do. >> mark: no compromise in washington, so the budget cuts have begun. they went into effect an hour ago. in is a live picture of washington, d.c., the nation's

head in gridlock. earlier today the president called top leaders from both sides to the white house. simply put, republicans want spending cuts while the president wants to increase revenue while closing loopholes to reduce the deficit. >> derek: the president got his tax hikes on january 1. the discussion about revenue, in my view, is over. it's about taking on the spending problem here in washington. >> mark: republicans in the white house did come together on one issue. they agreed to keep the government running through september 30 and avoid a shut-down at the end of this month. >> how concerned are people about the cuts? deborah is live now where she went to sample the sequester

mood tonight. >> reporter: we found more ambivalence than alarm. from a noted stanford economist, open optimism. >> derek: this isn't the worst day of the year. >> reporter: he's a democrat. >> derek: he was preparing for the state of the union address. >> reporter: he's there on the far right with other prominent economists meeting two years ago. he knows a household doesn't slash groceries the same way it does for vacation and the same should be true for government. >> derek: this forced us to make cuts and without it we would have never made any cuts. >> reporter: this mom worries about losing park rangers. >> derek: i care because you can't access parks like you

could before. >> reporter: in a community where student loans matter. >> derek: nobody wants to deal with the debt. >> reporter: this carpenter putting in a new resident has had slow spending. >> derek: i think some of the public are saying that it's about time. >> reporter: economists and outside washington seem resigned to what is happening, and the stock market is close to its all-time high. >> derek: they thought the government was going to destroy the economy. >> reporter: the professor adds that the messiness of the cuts will come to a head. >> mark: here is a look at financial markets, and they ended on a high note.

the dow, gained 35 and 75 points from its all-time high. nasdaq was up nine. manufacturing expanded. >> mark: government agencies are taking steps to get in line with the budget cuts and here's a few examples. the fda says there could be 2100 fewer food safety inspections because the agency would have to rein its spending to last year's level. the national parks service, look at this. this is how it could affect the parks. visiting hours at all 398 national parks will likely be cut and sensitive areas would be blocked off to the public and there would be fewer rangers and more locked bathrooms at the national parks. and what could be happening with the u.s. coast guard, a big

effect, restricting rescues, cutting back the number of hours that the aircraft will supply and cutters will patrol the seas. >> mark: the historic decision to file a brief in the prop a case urging the u.s. supreme court court to address the same-sex marriage. >> if i'm asked, do we think that meet the constitutional muster, and the answer is no. >> he says there for constitutional law for that. california rubs have a lot to work as they gather for the state party spring convention. they say it will take a while to

get over the last election and the poor showing among minorities. >> i think it's important for our state party to identity those people. >> dillon is running for the first republican female vice chair at the convention. >> extra security and a stronger police presence, some of the changes that the first friday event in oakland's uptown neighborhood. let's hear more about the changes and a new emphasis on safety. >> reporter: it ended about an hour ago but venders have taken down the stands but there's plenty of people still in the area. >> reporter: this band kicked off tonight's live entertainment, people dancing,

and glad that the city hasn't lost its rhythm. it's a family-oriented activity and extra security was hired. this boy was shot and killed following last month's first friday event. >> it's been marred by violence lately, and it's unfortunate. when you look at what the city is trying to do to change the image of oakland, you know, this is sort of our calling card. >> reporter: organizers say this event is important to the identity of the city and the culture. >> this is one thing we can do to help the area, and i want to the do more than just the first friday. >> reporter: there is no drinking in public and ending the event an hour earlier at 9:00. first friday covers seven blocks, three blocks less than

previous months. the hope is for a smaller, but safer event. at 7:00 and 9:00, organizers called for a moment much say lets to remember the young man killed here last month at a store. >> new video of a fire that ripped through a house in oakland, and it started at about 7:00 tonight. four people were displaced and the red cross has been called in. we're told the fire started at year of the home. fire officials say the cause is under investigation, but it does the not appear to be suspicious. the highway patrol has a man in custody tonight accused of leading officers on a high speed chase crashing into multiple

vehicles. it started at about 3:00 this afternoon and ended on highway 29 in napa. officers chased the drivers of a white nissan pickup after seeing him hit a motorcycle and continue to drive. he made two unsuccessful carjacking attempts before he was arrested. >> new information about an alleged kidnapping and chase that ended with the deputies shooting and killing a man. the victim's quick thinking helped authorities rescue her. >> reporter: according to police, this man said, it's on, and may have been on drugs when they tried to pull him over with a woman in the car. >> reporter: he crashed his car in this wooded part. the woman escaped unhurt but investigators say he was shot and killed in his car when a

deputy feared the suspect was reaching if a weapon. >> derek: i was amazed because this is a very quiet area. >> reporter: these people and neighbors only heard what happened this morning. he slammed through the gates of this private community down this small road before he crashed. >> it's a close, family unit so i'm surprised this person drove in here knowing there's signs out or it's a dead end. >> reporter: investigators say they only knew about the kidnap nothing progress because the victim sent text messages to a friend who called 911. >> derek: providing a description of the car and that she was concerned for her safety. >> the victim had known him since january and agreed to see him last night but said he began acting strangely and mentioned having explosives in his car after he picked her up. the police said they did not find any weapons in the vehicle

but they sad that part of the investigation is still ongoing -- but they said that part of the investigation is still going on. the sheriff's investigators announced the arrest of a father-son deal in connection with a triple homicide last month. 65-year-old francis choir dewire and the son and another person. the pump accuseed of killing three people on the las vegas strip is expected to be taken back. he was arrested yesterday in la. this is his booking photo. the da in la is considering seeking the death penalty.

today we are seeing the police report that details the fatal encounter. it said it took nine minutes with a argument to escalate from a shouting match at a a stand. the weekend will be a different story for the weather. maybe we have hit the bottom and come back [ woman ] my boyfriend and i were going on vacation,

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visit citi.com/thankyoucards to apply. losing two police officers in the line of duty is fresh on the minds of many people in santa cruz tonight. how the community is trying to heal and honor the officers. >> reporter: people are grieving about this situation. in this typically laid back beach time the sun is setting on a horrific week and emotions continue after two police officers were gunned down at this home in the line of duty. >> it's been tragic. it's like nothing i've ever

experienced. >> reporter: new photos showing the sergeant with his family and showing butler in hostage negotiation training. on tuesday there was no negotiating with the former marine investigators say ambushed the marine and he was killed in a shoot-out. >> the entire community is grieving. this town has been hit hard. >> reporter: today the police returned to the streets while sheriff's deputies nearby saluted them. >> we could never repay them for what they do and then to honor us, to honor us the way they did this morning, that was pretty special. >> reporter: all through downtown we support our police signs went up in storefronts. this store is one of many businesses donating to the

funds of the fallen officers. they hope to raise money for them. >> natural was all we needed to hear. we wanted to do what we could to help out. >> reporter: the memorial won't be held at a santa cruz memorial but in a place to accommodate more people. we learned the governor is expected to attend. >> the santa cruz sheriff's office is looking for this woman woman. they said she's not involved in the murders in any way but she knew the suspect expect. investigators in hoping to speak with her to learn more about the gunman's background. the location for next week's momentumel has been moved. it will be held at the hp pavilion next thursday and

begin at noon. police are searching for a person of interest in the killing of a 14-year-old girl found dead yesterday. police say the body of nichols was found in a field behind her school two days after she was reported missing. tonight police announced they are looking for a man seen on a camera minutes before nickels is seen walking through that same area. in colorado, court documents suggest a please of insanity for the man accused of the mass killing in the movie theater. they say james holmes is considering such a plea. he's accused of killing 12 people and wounding 58 others in a crowded movie theater during the premier of the batman movie. prosecutors have not said if they will seek the death penalty. the university of california board of regions has set up a

special committee to find a pre-placement for udolf. it's four years' years' probation for saint mary's basketball program, handing that penalty down today because of infractions made by a former assistant coach. we look at how this could affect the program and the school's image. >> reporter: this is a catholic school which confessed to committing violations. >> i take you will responsibility for any missteps. >> reporter: the school announced the basketball team has been sanctioned for the actions of a former assistant coach. >> we have been cooperating with the ncaa for over two years on this investigation. >> reporter: the athletic director explained the

violations were committed by assistant coach keith moss who resigned in 2009. >> arranging for housing and providing smaller benefits such as shoes and work-out gear to a pro prospective student. >> i thousand the penaltyies were harsh. we having a having a have accepted responsibility. >> i hope it doesn't detract from all the good things the school does. >> reporter: the 23rd ranked school is still eligible for the post-season tournament.

later in this newscast, our sports director tells us how the squad will respond. flight cancellations at bay area airports. the federal aviation administration grounded flights for about two years before the fog cleared. about 20 flights experienced delays. there was a dense fog advisory this morning. we will see some high clouds tonight and clouds tomorrow. temperatures tomorrow are going to cool off. outsides it's mild, in the 50s outside, 55 in hayward and 50 in walnut creek. temperatures tomorrow will be warm. today we had mid-70s. here is today's numbers.

tomorrow, it's cooler but not cold. it's still in the upper 60s and even low 70s. sunday, more clouds. and into the 5-day forecast, a chance for rain finally. we'll address more of it at 10:45. governor brown issued a state of emergency, and it comes in the wake of flooding over christmas. the county declared a local emergency after days of heavy rain caused a failure of the levee. they request federal aid to repair damaged

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the district attorney charged him with five felonies. he plans to plead guilty. and they said a gambling addiction led to his downfall. the district attorney revealed through receipts how the long-time politician moved more than $130,000 from public funds for his private use since 2006. >> let's say this was an example of violating the public's trust. >> reporter: he was charged with these charges. he resigned today and said he

will plead guilty to all the charges on march 18th. they said he will be legally banned from elected office and be fined and could face jail time. >> we will ask for a substantial jail term in this case, up to a year, and we believe that that's appropriate for what his conduct was in this case. >> reporter: we went to his home but nobody answered the home. court documents reveal much of the money misused by him took place in casinos. in a statement of resignation he said for years i have suffered from depositiontion and my gambling addiction. the supervisor says he hopes the county can move on. >> hopefully this brings closure not just to this, but also in terms of the public perception of the board of supervisors. >> reporter: they have 45 days from today to appoint a

replacement or set a date for a special election. channel 2 news. the south bay woman who spent four years in prison for planning a severed finger in a bowl of chilly pleaded not guilty today. she and her son are accused of filing a false police report to hide the fact he was in possession of a gun. apple experienced a set- back when a judge reduced the amount samsung must pay to settle an infringe meant case. they ordered samsung to pay nearly $1 billion. the judge agreed, but not with how the damages were calculated. she reduced the amount. theres of apple have been falling in recent weeks, and

sank another $10 today and the stock fell about two and a half percent. that's its lowest level in a year. by comparison, yahoo appears to be a silicon valley company on the rise. the shares have risen. today its stock hit its highest price in a year at $22 a share. facebook announced a new look for it's 1 billion users. they are showing off a new design for the site's news feed. no word on what the changes will entail. the last major change was the addition of a timeline. preparation leading up to tonight...

firefighters in riverside county says high winds slowed their efforts to put out a fire, starting yesterday a few miles west of the city of riverside. the fire is 60% contained after burning over 300 acres. the city of san jose is welcoming more than two doesn't more firefighters to their rank despite budget cuts. an $8 million instead grant is paying for this. >> reporter: this is the

largest far academy graduating class yet. what it means if truck sitting idle will go back into work. the fire department has 31 newly badged firefighters tonight, and it took them years of preparation and 18 weeks of academy training, but it took an entire department to get them here. >> every member has made a personal sacrifice to allow for us to hire these folks that we desperately need. >> reporter: they put their lives on the line, but now they have put their paychecks online. >> i know that men and women can't wait to get support come sunday so we can relieve brown-outs and do a lot more. >> reporter: this graduating

class is a boost that they needed. >> k. c. kegan... >> this is a dream come true. >> he's been chasing the fire sirens ever since he could walk. >> reporter: this is the only woman in the class. >> this is as great welcoming and i'm happy to be here. i just will try in the to cry. she did a great job and we're proud of here. >> class 1202, dismissed! [ cheering and applause ] >> reporter: the 31 new firefighters start work sunday. and the grant paying for their salaries runs out in two years, so their future depends on future budgets. a police chase in the east

bay ended in an accident today and snarled traffic. the police say it started this morning when a woman called 911 to report a burglar inside her home. the bug large took off. when officers spotted the vehicle, there was a crash. they caught the suspect. he is facing charges including burglary and reckless driving. another police chase today when a pickup truck hit a power pole knocking out power to many customers. the police say officers spotted the truck driving erratically and followed it. they identified the driver as 38-year-old mark beeonteennee of san francisco. he chases charges of drug possession and resisting arrest.

the truck was stolen a couple of days before that. the silicon valley is welcoming a piece of hollywood. they are rolling out the red carpet for the films festival. there was actors on site. >> when you come here, everybody is coming out and making the effort and time to see the films. >> reporter: the festival run the through march 10 at 3 theater ins san jose. harrison ford, on sunday, will be presented with an award. the star of a long-running sitcom had been battling cancer.

they are heart broken. she was 69 years old. church owe refers say it may be some -- church officials say it may be some time before they will find another pope. the pope's apartment has been sealed with tape, and it can only be opened for a new pope. comments about israel, the minister was judged. in afghanistan, a group of wouldn'ted warriors returned to

kabul. they are not there to fight but to heal. they shared experiences with those now serving their and the wounded warriors say it helped. dennis rod man ended his visit to north korea. >> his grandfather and father were great leaders, and he's a proud man. >> reporter: the leaders are considered dictators by many, but the current lead are and rod man hit it off. they will talk about the trip

saturday. a popular fast-food chain [ woman ] my boyfriend and i were going on vacation,

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a study recently finds that a method der rain study can help with the heart and olive oil. this owner makes olive oil. >> it's a natural fat, organic

natural fat. the walnut is important because it's natural. >> reporter: but this finding changes everything. >> this news is special because is scientific. it's not a fad diet. >> reporter: this ceo explains. >> olives used to have good fat. now we know that olives reduce bad cholesterol, lift good cholesterol. >> reporter: this olive company are big olive processers whose suppliers are small. >> the average holding is only on the order of 30 to 35 acres. >> reporter: how big is big? consider this, 95% of all of the olives grown in the u.s. come from california. because of the recession, the

industry couldn't be more pleased about the potential for the olive demand. >> we have the capacity for a lot of growth. >> reporter: good news for human health and the health of california's economy. taco bell is affected by the horse-meat scandal. they defected horse dna in ground beef in britain. ears include purchase burger king, nestle and others. in florida they have given up trying to find a man who fell in a sinkhole in his home. they said the ground is unstable and the rest of the house will probably fall. the man's brother said he climbed into the hole but

couldn't reach his brother. the whole is about 20 feet deep and growing. a boy born with a rare disorder, and what the strangers mom, i invited justin over for lunch. good. no, not good. he's a vegetarian and he's going to be here in 20 minutes! [ mom ] don't stress. we can figure this out. ♪ [ male announcer ] get the speed to make a great first impression. call today to get u-verse high speed internet for as little as $14.95 a month for 12 months with a one-year price guarantee. this is delicious. ♪ [ male announcer ] save the day in an instant. at&t. ♪

a special reunion today between a young boy and donors, how they kept the boy alive for six years. >> reporter: tonight a story of family, of survival, and dough nation donation. a big smile today, but not so

back in 2006. dillon came into this world sick, diagnosed with an anemia, a rare genetic disorder. dillon needed blood, nearly every day for six years until he was able to get his bone marrow transplant in may. here at the red cross, he met these people and so, too, did his grandmother. the blood within this group was the lifeline for a young boy as they knew as a small boy. today for the first time their

eyes set sight on the baby. >> to know that we made a difference is great. i hope he leads a full life. i know he will. >> thank you for giving our son life. a lot of types we take life for granted but this is a good opportunity to come and say thank you. >> reporter: all of their blood was put right into dillon, and tonight the baby is happy and healthy for all to see. state officials have put the great white shark on a waiting list to become an endangered species list. the sharks will have the same protection as species alreadien the list. great whites have international

protection and can't be targeted by fishermen. in san jose, wildlife experts release add great horned owl back into the wild this afternoon. it has been at the while life center recovering from injuries it suffered from flying into a bashed wire fence -- barbed wire fence. a great friday, numbers into almost the mid-70s. the official numbers, mostly mid-70s. temperatures tomorrow are coming down. you can see the clouds out there now. if i put this in motion, you will see the movement. these clouds will fill in over the bay area tomorrow and create a muggy feel to the air. it will cool things off a bit. we are still looking at temperatures in the upper 60s,

low 70s, and it's mild outside now, and the high clouds will keep it above freezing and keep the frost away tomorrow too. tomorrow morning, mid-40s. the forecast, the rain comes back into the extended forecast. the overnight lows, low 40s. the high pressure is breaking down. saturday we will be cooled, same for sunday, but don't change plans. it will still be in the upper 60s. but that opens the door for something that gets here tuesday and wednesday. saturday morning, clouds. saturday afternoon, mostly cloudy, maybe sprinkles to the north. the dynamics are here but there could be drizzle along the coast. sunday, less cloud cover but

cooler. monday and tuesday, a chance of showers. tuesday into wednesday it will get wet and feel like winter. we are cooling off, but by no means is it below average or cold. sunday, more sunshine, but temperatures will be cooler. the 5-day forecast, hope fog rain on tuesday because we need it. san jose is down to 70% of rainfall average. so this might help out. >> we've been waiting for it. >> the weekend looks good. >> thank you. a rocket blasted off today headed for the international space station and carrying the hopes and dreams of some bay area students. it's carrying four experiments designed by students from valley christian school in san jose. a total of 31 students worked for seven months to design the experiments and each had to fix

into a box about the size of a chalk board eraseer. >> i can't believe it's up there. i'm excited. >> this is an honor and blessing. >> they range from growing bacteria in plants to observing the action of magnetic fluid in zero gravity. this is the second launch. it has the u.s. contract to supply the space station. officials say there was a problem shortly after lift-off. the problem was fixed, and it will delay docking with the space station by about a day. the

[ woman ] my boyfriend and i were going on vacation,

so i used my citi thankyou card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? and with all the points i've been earning, i was able to get us a flight to our favorite climbing spot, even on a holiday weekend. ♪ things are definitely... looking up.

[ male announcer ] with no blackout dates, you can use your citi thankyou points to travel whenever you want. visit citi.com/thankyoucards to apply. take a look. this is a live picture of the bay bridge and the light art installation. 25,000 lights are strung on the northern side, and it will stay up for two years flickering on and off from dusk until 2:00 a.m. >> that is beautiful. mark is now with more on the warriors who will be glad to get home. >> one more out on the road. warrior fans have learned to

live with low expectations. this season could be extra cruel. they were so goods for months and now it's a nasty flash back. a fine step, curry, there. he had 25 as he hits the three. warriors down four at halftime. barnes, who has been silent of late, looking good here, off the feed from curry, 16 points and tied at 50-all but boston takes over for the most part. 26 points for him, eight rebounds, and curry, it looks like he was out of gas. air ball there. he had six of 22, and tomorrow night is in philadelphia. they have lost three in a row.

on the national college basketball scene, saint mary's has been the little engine that could. the program is it hard for alleged recruiting violations. bennett can't recruit off campus and he will be suspended for the first five games of next year. they are on four years of suspension. bennett has another definition of madness. >> the the penalties are harsh and it have an effect, but we'll work through it. it will be a challenge. >> forget the trip to disney world. flacco is going to the bank after his mvp experience

against the eight vince. there is tiger. who doesn't want to take a shot at him? serena, his body, a block, and you don't do this to her. and you don't do this if you are the number 1 player, mcelroy, not playing well, and he picks up and leaves and said he had a tooth ache. he probably will regret that. he was seven over the number 1 player in the world, and he's not used to being seven over anything. >> but you should finish what you start. >> we'll see you the next time

news breaks. >> we are following a natural gas